Question by janelle p: Can someone get a reverse mortgage if they own more than one property?
Can someone get a reverse mortgage on the property they live in but still collect rent from others they have? I don’t want to call one of these places because they are all 800 numbers, more about cialis 40mg and I don’t want to be bothered by them until I’m more clear how these things work.
Best answer:
Answer by NaturesDoctor
Yes.
Know better? Leave your own answer in the comments!
Did you know that a reverse mortgage was considered by Consumer Reports Money to be the #1 financial mistake a person can do during their retirement?
They suggested that you sell the home and move into a place that you can afford
Please do your research.
Consider reverse mortgages the scam of the decade that will soon, very soon be made illegal by the federal government
Reverse mortgages are not for people with assets.
If you own rental property, why would you want a reverse mortgage?
Absolutely. There is no income or credit qualification. Although we do run credit reports to verify your information and that there are no other liens on the property or open BKs, it is not used to qualify; neither do we look at debt to income ratios etc. All that is required is that everyone on title must be 62 years old at closing and that it is your primary residence. You do not have to be destitute to do a reverse mortgage; and you can use it to buy a primary residence; and you can do it on a 1-4 unit building, as long as you live in one of the units.
I will caution you on two things. You can only have one FHA loan at a time. And all federal liens and all the loans and liens against your primary home must be paid off at closing as a condition of the loan. They don’t care about any other debt or loans on your other property.
Also, FHA is getting a bit skittish on folks not paying their property taxes and insurance. It currently doesn’t apply to a refinance of your existing home, but now when one uses a reverse mortgage to buy a new primary residence and decides to keep their old home and rent it out, FHA is now requiring that the senior be financially able to pay property taxes and insurance on the rental. They will want to see lease agreements. While they may not be doing that currently on a refinance of your existing primary residence, it may just be a matter of time.
So while you may not be buying a new home and already have existing rental property, don’t be surprised if the lender asks to see your financials. While FHA has its own specific guidelines and requirements and may not be asking for it now, lenders may add their own at any time on top of those required by FHA. Just a heads up.